Joanne the Coach

Negotiating Rates: The Complete (ish) Guide

There was a really useful article on negotiating fees from Cath Janes in Press Gazette this week.  I find that the biggest mistake freelancers make is not to mention fees at all.  Why is that?  It's not exactly vulgar to expect to be paid a decent rate for the work you do.

The notes below are from the workshops I ran last year on Negotiating Rates.  I've posted a few of the main points before, but this is the full schamolie. Be warned, the last bit involves you writing stuff down.  That's right, on a page with a writing implement.  A very last century concept, I know, but believe me, it does make a difference.  Sometimes using your hands is the best way to get your brain moving in a new direction.

Hope you find them useful:

Negotiating Rates for Freelancers Notes

Why do so many freelancers find negotiating rates so hard?

Money’s an awkward subject for many people.  Part of the problem is that we tend to personalise money issues too much.  If you’re freelance it’s particularly easy to fall into the trap of measuring your own sense of self worth and self esteem by what you’re getting paid.  If you get a well paying job you feel great, if you’re having a dry patch then it’s easy to let your self esteem plummet. 

A recent survey of levels of happiness at work found that some of the people in higher paying jobs – the managers, lawyers and bankers - were the least happy, whereas those in the less well paid jobs said that they felt much more fulfilled. 

So having a higher salary doesn’t necessarily make you a happier worker.  But as a freelancer, depending on how you work, your income can be unpredictable – it’s easy to get into that feast or famine cycle, when you either have too much work or not enough.  And if that’s how you’re living and working, you have to be a fairly strong person not to internalise all of that to a degree.  It’s not surprising that many freelancers say that their confidence levels can go up and down depending on how things are going workwise.

Some of our day to day relationships with money can be very straightforward.  You go into a shop, you see a price on something and that’s what you pay.  Have you ever gone into a shop where they don’t have the prices on anything?  What runs through your mind then?  We tend to assume that it’s going to be too expensive.  And this can be a rather uncomfortable feeling – that sense of not knowing. 

And in a way that’s what can be hard about negotiating rates – we're right in the middle of that sense of not knowing.  You don’t want to quote too high and maybe lose the job, but equally you don’t want to quote too low and risk missing out.

And sometimes, if it’s a job you’re really excited about doing, especially if you’ve been pitching a lot and not getting any reply, it’s easy to forget to ask about rates.  Have you ever agreed to do some work without agreeing a rate?  I think we all have at one point or another.

Remember that if a potential client likes your work enough to hire you, they won’t say no just because you ask about rates.  That is how professionals operate - they clarify what the rates are.

The rate you get will depend on several factors, and sometimes one of those will be what the person hiring you thinks they can get away with.  So how you communicate, the confidence with which you discuss rates will also have a bearing on the rate you get.

There is always someone who will do the job cheaper than you.  Negotiating on price rarely ends well.  However, there may not be anyone who does the job better than you.  And people will pay more if they believe in the value of what you’re offering and if they want it enough.

Are you wearing the cheapest clothes you could find?  Are you using the cheapest computer you could buy?  You probably took lots of other things into consideration when you were buying, just as there are other factors that come into play when someone decides to buy your services.

Before negotiating rates:
• Write down what you want/need to earn in a year to work out your own daily rate. Be aware of what your own bottom line is – feel proud of the rates you charge.
• Do your homework – know what to expect before you pitch to a client.  Research both the client and current rates for the job.  Ask your colleagues or use online discussion groups to find out current rates.
• Be aware of industry rates in both the work you do now and the work you intend to do in the next few years.
• A website will build your credibility which will help you in negotiations.
• Be aware of your own money issues that may be holding you back from earning more.  You must have the conversation about rates with yourself before you have it with anybody else.  Asking for a particular rate should be done in as neutral a way as possible – as if you were saying your phone number.

During negotiations:
• Ask lots of questions about the job before you get to rates – clarify what’s involved, deadline, etc.  Show that you are interested in the quality of the project.  Don’t just focus on the rate.   Find out what the client needs to feel they have made a good investment.
• Don’t assume what the rate will be, always ask.  Other wise, you may only get the minimum payment by default.
• Avoid being the first one to name a figure.  Always ask ‘What is the budget? /what are your usual rates' etc.  Depersonalise your language.
• If pressed for a rate, give a fairly broad range and don’t quote anything until you’ve established the parameters of the job. Be business-like – don’t just pluck a figure out of the air. 
• If you believe a job is worth more, say so and stick to your guns.  If what you’re offered is fair and in line with what you were expecting, accept it.  Don’t assume that you need to haggle every time. 
• Don’t be afraid to say no if the rate is not up to scratch – and there are times that you will have to say no, in order to have space to pursue better paying work.
• For a new client, find out immediately what the payment and accounts process is.

If you’re offered a low rate:
• Don’t necessarily dismiss it out of hand if there are other attractions to the job.  But never feel obliged to accept it either.  The client who prefers to pay low rates will always be able to find someone who will do it for less than you.
• Always be thinking about how you can use the same base material in a number of different ways – make the most of your time by selling your work to a variety of markets, or selling more to the same client.

How other freelancers successfully raise their rates:
• They arrange a regular performance review and collect concrete evidence as to why they deserve a raise – positive feedback, raised circulation etc
• With regular clients, they simply state that from X date, the rate will be going up to Y, and invoice accordingly.  April is a good time of year to do this, as you can legitimately say that you are reviewing your rates in the light of the new financial year.
• They don’t necessarily accept the first rate offered. 
• They’re not afraid to walk away from low-paying jobs.

                                 

To explore your attitudes to money, grab a pen and write down:

10 things I know about money

10 things my mother taught me about money

10 things my father taught me about money

This is a really powerful exercise, and you might be surprised by the thoughts that come up. 

Now look at these attitudes and consider how they might affect how you behave around money today.  Which beliefs are holding you back and which are supporting you?  What needs to change?

 

FURTHER INFORMATION:
For coaching to help you become a fearless negotiator, get in touch or visit the MediaLifeCoach website.

Media Training - Negotiating Fees For TV Interviews

As a freelancer, especially in cash-strapped January, it pays to aim for the best deal you can for the work you do.

Think of a TV budget as a general pot of money – albeit a fairly small one which can always find the wherewithal to buy the Executive Producer another round of drinks.  TV productions rarely have a set fee available for guests – it’s a question of you (or someone on your behalf) negotiating the best possible deal. 

This doesn’t apply if you are directly promoting a product - if you’re talking about your latest product or service, this is classed as a promotional appearance and would not generally result in a fee.  But if you are asked to give a general, expert opinion on issues pertinent to your business, then you are entitled to ask for a fee.

Now, before you start planning to retire off the profits of a few soundbites on GMTV, be warned – TV fees are notoriously stingy, especially once you factor in the amount of time involved.  An appearance on a national daytime news programme could net you in the region of £150. 

For this you’d be expected to do some preparation, spend time traveling to the studio, hang around for a while waiting for your slot, then talk on screen for approximately 3 minutes.  For an expert contribution to a documentary you could expect to receive around £250, but the interview would last much longer and so would the preparation.

There are many people who appear regularly on TV who never get paid at all for their appearances.  For others it can provide a second income stream and act as a good profile raiser for other business activities.  The difference is very simple – you have to ask.  It’s amazing how many people who appear in the media never ask for a fee, and consequently never get one.

If a producer can save money by not paying you for your contribution, then they will do so, because it then leaves more in the pot to be spent on other things (like flashing disco lights and booze for the crew).

The best way to negotiate your own fee is first of all not to mention money until you’re sure they want you to take part.  Be aware that there may be no fee at all, in which case it’s up to you if the experience is valuable enough for you to want to take part.  You may have several conversations with a variety of researchers and producers before you’re told whether you’re definitely required or not. 

Once they start talking about what time they want you to turn up, this is the time to calmly ask “What is the fee?”  Note that this question assumes that there is a fee, as opposed to “Is there a fee?” which can easily be met with the answer no. 

At this point the researcher will probably ask you what you normally get for TV appearances.  This can be a tough one if your only previous onscreen appearance was as an usher in your cousin’s wedding video. 

The smart answer at this point is to say that it varies, and give a range that you’re comfortable with (say around £100-£250, depending on how much of your time’s required). Remember that if you push for too high a fee, you may not be asked back, whereas if you’re seen as being good value then you are more likely to be asked to do more.

The exception to this is the BBC, where there tends to be less negotiation.  A random poltergeist is more likely to ring you up and tell you how much your teeny weeny fee is going to be.  You will then shed a small tear and cross that Ferrari off your Christmas list.

When I was a TV producer I always used to pay guests who hadn’t asked for a fee at least £100.  They were usually quite shocked by this and there were lots of comments along the lines of “You mean you get paid for this!!!”.  Well, yes you do, other people do and there’s no reason why you can’t.  You have nothing to lose by asking.

(c) Joanne Mallon 2008

Adapted from The Beginner's Guide To TV Interviews

Negotiating Rates - The Direct Way

You've already had my tips on how to negotiate money and raise your rates.  The clip below shows you a more direct approach.

This lovely rant is for every freelancer who's ever been faced with a tightwad client (that's all of us, right?):

For Freelancers: How To Negotiate Money and Raise Your Rates

Been doing lots of speaking to groups this year about negotiating rates - I'm off to do a workshop on the topic this afternoon.* 

It's a subject that many freelancers seem to struggle with.  So here's a link to a podcast I recorded last year about Negotiating Money and Raising Your Rates.  Several people have told me that they've used the exercise in this podcast to riase their daily rates, so do take the time to listen, could turn out to be a very profitable 20 minutes.

One interesting point which has emerged from the workshops is this:

People who say that their policy is always to ask for a bit more than the first rate offered, say that generally the client does agree to raise the rate.

This isn't my personal policy - if the rate seems fair enough in the first place then I don't tend to bother asking for more for the sake of it.  But it's an interesting trend.  Seems like you have nothing to lose by asking for more, and plenty to gain.

~

*Driving and public speaking in the same day - good grief!  Will let you know if my nerves hold out.